IBEDC secures $160m to finance operations

The Ibadan Electricity Distribution Company (IBEDC) has secured a $160miilion facility to finance its capital and operational expenditures, the Managing Director/Chief Executive Officer, Fortunato Leynes, has said.

Leynes, who spoke in Ibadan over the weekend, said the requirement for the drawdown of the loan, were being finalised, adding that the funds would be accessed once the processes are accomplished.

He said the money would be distributed between IBEDC and Yola Electricity Distribution Companies that were acquired by the same set of investors.

The Deputy Managing Director, John Darlington, said though much resources would be required to drive the power sector, sourcing the finances, would not be a challenge. “There’s capital, there’s money and the resources are available,” he said, and that there‘s need to impress on those running the power sector to make the industry viable.

He said the same way that banks supported the telecoms industry because of its viability, the same way they would support the power sector because of its viability. “But the truth is, if our industry which is just evolving is not viable, nobody will put money in it. He said the challenge before the operators, was to make the industry viable so that investors would be enticed to invest in it.

Leynes said the company had placed orders for 24,000 meters that were awaiting delivery. He said once the company took possession, the metres would be made available to consumers, adding that the measure was taken to address consumers’ complaints of the cost of meters and the need to prevent tampering with features of existing ones.

He said IBEDC had started buying electricity distribution materials, such as transformers, poles and conductors that would improve its distribution capacity.

“We are also buying metres so that our customers will be appropriately metered,” he noted. He added: “Right now, we have this metre application, which could be got through Credited Advance Payment for Metering Implementation (CAPMI) scheme in which customers would make initial deposit and the company would refund the deposit over a period of 36 months with corresponding interest and within 45 days.